The myRA program has ended

*The myRA program ended on September 17, 2018. This site is no longer being updated.

Summary

What is happening?

The myRA program has ended. Any open account in your name will be closed in September 2018 and the balance moved to a new Roth IRA in your name at Retirement Clearinghouse, LLC (RCH), a private sector IRA provider located in Charlotte, NC.

If you would prefer to withdraw your myRA account balance or transfer your account balance to another Roth IRA instead of having your account balance moved to RCH, you must act soon. The deadline for completing these actions is August 31, 2018. Because there is lead time needed to complete certain actions, in some cases the deadline for submitting action to myRA is August 17, 2018.

For two years, there will be no account maintenance fees or fees associated with withdrawals, transfers, or the closure of your RCH account. RCH will also take over customer service responsibilities related to your soon-to-be closed myRA account, such as providing you with applicable tax forms, even if you close your account prior to the transition to RCH.

When will my account be affected by the move to a new Roth IRA?

Important dates to know are:

Friday, August 17, 2018

This is the last day to request a transfer of your account to another Roth IRA.

This is the last day you can request a withdrawal to be paid by check, which requires a call to myRA customer service.

Friday, August 31, 2018

This is the last day you can request a withdrawal to be paid electronically into your checking or savings account.

This is the last day the myRA account access site will be available.

Friday, September 7, 2018

This is the last day you can cash or deposit any withdrawal check you have received.

Friday, September 14, 2018

This is the last day that myRA customer service will be open.

The process of closing myRA accounts and transferring balances to RCH will occur over this weekend.

Monday, September 17, 2018

On this date, RCH will open new accounts to replace the myRA accounts.

As this schedule shows, there will be a period during which you will be temporarily unable to access your account balance or request a withdrawal while your myRA account balance is moved to a new account with RCH.

I have an open myRA account. What do I need to do?

You should consider your options and decide what you want to do with your myRA account:

Transition your account balance to RCH. You do not need to take any action. Your account balance will be transitioned to a new account at RCH that will open on September 17, 2018.

Transfer your account balance to another Roth IRA of your choosing. To initiate a direct transfer of your full account balance to another Roth IRA, you will first need to identify a different Roth IRA provider and open an account with them. You should then follow the process outlined by your new Roth IRA provider to transfer your myRA account balance to your new Roth IRA account. The deadline for a transfer request to be submitted to myRA is August 17. 2018.

Make a full withdrawal from your account. You can withdraw your myRA account balance by signing into your account online and requesting the balance to be deposited into a checking or savings account that you have linked to your myRA account. The deadline for you to submit a request to deposit your balance into your checking or savings account is August 31, 2018. You can also request a check by calling myRA customer service, provided you do so by August 17, 2018. All checks must be deposited by September 7, 2018.

Saving for retirement is an important activity, and a Roth IRA can be an excellent way to save. If you choose the first or second option above, you will maintain the Roth IRA benefits of your myRA account. If you choose the third option above, you may lose those benefits and instead face tax liabilities and penalties. To avoid this outcome, you can typically roll over the withdrawn funds (as well as any amount withheld by myRA account for tax purposes) into another Roth IRA you have opened. You must do so within 60 days of receiving the withdrawal. See myRA.gov/roth-ira for more details.

Finally, you should log in to your account to make sure your contact information is complete and up to date, so that you receive letters and emails about the transition. You can also update your information by contacting myRA customer service.

Additional details

What will happen if I miss the deadlines to transfer or withdraw my funds?

If you miss the deadlines to transfer or withdraw your funds, your myRA account balance will be transferred to RCH and they will open a new account in your name on September 17, 2018. At that point, you can contact RCH to transfer or withdraw your funds. There will be no fees to transfer or withdraw funds from your RCH account during the first two years your RCH account is open, and there will be no fees during this time to close your RCH account.

What do I need to know about the deadline to request a withdrawal to be paid into my checking or savings account?

Payment can only be made to a checking or saving account that you have linked to your myRA account, and it can take up to three business days to verify your checking or savings account and set up this linkage. Please note that the linkage must be completed before you can request a withdrawal be paid into that account. If you have not linked your checking or savings account to your myRA account prior to the August 31, 2018 deadline, you will not be able to submit a withdrawal request to have your myRA balance be paid into your checking or savings account.

What will happen if I attempt to deposit a withdrawal check after the deadline for doing so?

If you attempt to deposit a withdrawal check after September 7, 2018, the check will come back unpaid. Your financial institution will then take back the funds that it had deposited into your checking or savings account, and return it to your myRA account.

The balance in your myRA account will then be transferred to RCH, and they will open a new account in your name on September 17, 2018. At that point, you can contact RCH to transfer or withdraw your funds. There will be no fees to transfer or withdraw funds from your RCH account during the first two years your RCH account is open, and there will be no fees during this time to close your RCH account.

What information can I expect to receive from RCH?

When RCH opens your account, RCH will mail you a welcome kit that includes instructions on how to access your account and other account information.

What will happen after the transition is complete?

After RCH has opened your new account, you will need to follow procedures established by RCH to access your account. You will also need to contact RCH for customer support questions, including any questions about myRA accounts that closed before the transition began. RCH will also handle the sending of tax forms that you may need next year for filing your 2018 taxes.

How long has the program been winding down?

Treasury announced the phase-out of the myRA program in July 2017, and stopped accepting new enrollments at that time. In December 2017, the program stopped accepting contributions (deposits). On a recurring basis, myRA account holders have been sent emails and letters to notify them that the program is being phased out and that they have the option to transfer their account balance to a private sector Roth IRA of their choosing.

Closing the remaining accounts and transitioning the balances to RCH will bring the program to an end. After the transition of your funds to a new Roth IRA with RCH, your funds will no longer remain in an investment issued by the Treasury, and Comerica Bank (the current Treasury-designated custodian) will no longer be custodian of your account. The new accounts with RCH will not be myRA accounts.

Why is the program ending?

A Treasury press release from July 2017 set out the reasons for why the myRA program is ending. As noted in that statement, “The U.S. Department of the Treasury today announced that it will begin to wind down the myRA program after a thorough review by Treasury that found it not to be cost effective. This review was undertaken as part of the Administration’s effort to assess existing programs and promote a more effective government.”

Treasury believes in the importance of saving for retirement. myRA account holders will have their accounts transitioned to a private sector Roth IRA as opposed to having their accounts cashed out.

New RCH accounts

Investment and fees

Will my myRA account become an RCH account?

Any open myRA account in your name will become an RCH account. The transition of accounts is planned to be completed by September 17, 2018.

How will my money be invested in my RCH account?

Your myRA account balance will be moved to your RCH account and invested in the private sector Federated Government Obligations Fund (also known as GORXX). Although it is designed to be a low-risk investment, your principal will not be guaranteed. This means it is possible for your account to decrease in value. GORXX will serve as the default investment for any funds that move from myRA to RCH. RCH offers other investment options into which you can move your funds after your RCH account is open.

What fees or taxes will be associated with the transition of my myRA account balance to RCH?

There will be no fees or taxes associated with the transition of your account balance to RCH.

What fees will be associated with my new account?

For the first two years after RCH opens your account, you will not have to pay account maintenance fees. If you choose to keep your RCH account beyond two years, you will be responsible for fees charged by RCH at that time. Fees charged by RCH will be applied against your RCH account balance, meaning you will not be issued a bill.

What fees will there be to transfer or withdraw my funds or close my RCH account?

For the first two years after RCH opens your account, you will not have to pay fees if you wish to transfer funds to another Roth IRA or withdraw funds and have them sent to you. There also will be no fee during these two years for you to close your RCH account. If you choose to keep your account with RCH beyond two years, you will be responsible for the current fees charged by RCH at that time. At that point, fees charged by RCH will be paid through your RCH account balance, meaning you will not receive a bill.

What fees will be associated with the investment?

There are fees associated with the default investment (GORXX). These types of investment related fees are common and are paid through the invested assets. These fees will be taken from the amount of interest you will earn, meaning you will not receive a bill.

If you use another investment option at RCH aside from the default investment option, the fees associated with that investment may be different than those associated with the default investment.

How can I learn more about fees in general and what fees apply to my account and investment with RCH?

You can learn about mutual fund fees and expenses in general at the U.S. Securities and Exchange Commission’s (SEC’s) website. You can also learn more about saving and investing at Investor.gov.

For the first two years that your RCH account is open, you will have no account maintenance fees or fees to withdraw funds, transfer funds, or close your account. There are fees associated with the default investment (GORXX). To learn more about fees that apply to your account and investment with RCH, including fees that will apply after two years, you should contact RCH directly.

Other account information

How do I access my new account?

When RCH opens your account, RCH will mail you a welcome kit that includes instructions on how to access your account and other account information. The account itself will be accessible at securities.rch1.com.

Will I need a new password for my account at RCH?

You will need a new password for your account at RCH. The login credentials you used to access your myRA account will not transition to your new account. When RCH opens your account, RCH will send a welcome packet from RCH that includes instructions on how to access your account and other account information.

Will I receive a new account number for my account with RCH?

You will receive a new account number for your account with RCH. This account number will be different than your myRA account number.

How can I contribute (deposit) funds into my new account with RCH?

You will be able to contribute (deposit) funds into your new account by mailing a check along with a required deposit form to RCH. RCH will provide you with a copy of the required form for you to complete.

Will I be able to transfer my RCH balance to another Roth IRA provider?

You will be able to transfer your RCH balance to another Roth provider if you choose to do so. There will be no fee to do so until two years after RCH creates your account. After that point, a fee may apply.

What minimum or maximum balance or contribution (deposit) requirements will there be on my new account?

There will be no minimum balance or minimum contribution (deposit) requirements on your RCH account. Furthermore—and unlike your myRA account—there will be no maximum balance limit on your new account. (myRA accounts were limited to a balance of $15,000.) However, the annual contribution limits that apply to all Roth IRAs will still apply. For more information on the Roth IRA limits, see myra.gov/roth-ira/.

Will my account alerts carry over to my new account?

The myRA program offered several account alerts to account holders. Some of these alerts were ones that account holders could choose to use and configure. None of these settings will carry over to your RCH account.

Who will provide my tax forms when I need to file my taxes in 2019?

RCH will provide you with applicable tax forms going forward. That includes reporting needed for transactions that occurred this year before the transition, and even for myRA accounts that closed before the transition.

How will I be able to access past statements and tax documents?

If you need access to past statements and tax documents, contact the RCH Service Center. This information will be moved to RCH as part of the transition, including for myRA accounts that closed before the transition.

Who will provide customer service support after the transition if I have questions about my closed myRA account?

After the transition, RCH will take over all customer support responsibilities from the myRA program, including for myRA accounts that closed before the transition.

RCH

Who is RCH?

Headquartered in Charlotte, NC, Retirement Clearinghouse, LLC (RCH) is a financial services organization that works with Individual Retirement Account holders, retirement plan service providers and investment providers. RCH has two wholly-owned subsidiaries: RCH Securities, LLC, a member of FINRA (www.finra.org); and RCH Shareholder Services, LLC a registered transfer agent with the U.S. Securities and Exchange Commission.

Actions to consider

Your options

You should consider your options and decide what you want to do with your myRA account:

Transition your account balance to RCH. You do not need to take any action. Your account balance will be transitioned to a new account at RCH that will open on September 17, 2018.

Transfer your account balance to another Roth IRA of your choosing. To initiate a direct transfer of your full account balance to another Roth IRA, you will first need to identify a different Roth IRA provider and open an account with them. You should then follow the process outlined by your new Roth IRA provider to transfer your myRA account balance to your new Roth IRA account. The deadline for a transfer request to be submitted to myRA is August 17, 2018.

Make a full withdrawal from your account. You can withdraw your myRA account balance by signing into your account online and requesting the balance to be deposited into a checking or savings account that you have linked to your myRA account. The deadline for you to submit a request to deposit your balance into your checking or savings account is August 31, 2018. You can also request a check by calling myRA customer service, provided you do so by August 17, 2018. All checks must be deposited by September 7, 2018.

Saving for retirement is an important activity, and a Roth IRA can be an excellent way to save. If you choose the first or second option above, you will maintain the Roth IRA benefits of your myRA account. If you choose the third option above, you may lose those benefits and instead face tax liabilities and penalties. To avoid this outcome, you can typically roll over the withdrawn funds (as well as any amount withheld by myRA account for tax purposes) into another Roth IRA you have opened. You must do so within 60 days of receiving the withdrawal. See myRA.gov/roth-ira for more details.

Finally, you should log in to your account to make sure your contact information is complete and up to date, so that you receive letters and emails about the transition. You can also update your information by contacting myRA customer service.

I no longer have a myRA account. What do I need to do?

There is nothing you need to do if your myRA account is already closed. RCH will send you any tax forms you need. RCH will also take over responsibility for answering customer service questions about your closed account, beginning on September 17, 2018.

How do I transfer my myRA account to another Roth IRA of my choosing?

Your myRA account is a type of retirement savings plan called a Roth IRA. To initiate a direct transfer of your full account balance to another Roth IRA, you will first need to identify a different Roth IRA provider and open an account with them. You should then follow the process outlined by your new Roth IRA provider to transfer your myRA account balance to your new Roth IRA account.

By opening another Roth IRA and working with the new Roth IRA provider to initiate a transfer of the funds in your myRA account to your new Roth IRA, you avoid withholding and potential tax liabilities (including potential tax penalties) that may apply to earnings if funds are paid directly to you.

How do I make a full withdrawal from my account (and potentially roll over the funds to another Roth IRA)?

You can withdraw your myRA account balance by signing into your account online and depositing the balance into a bank account that you have linked to your myRA account. You can also request a check by calling customer service.

A myRA account follows Roth IRA rules. This means that tax liabilities and penalties may apply to earnings if funds are withdrawn and paid directly to you. If you want to maintain all of the benefits of a Roth IRA and avoid the tax liabilities and penalties that can be associated with withdrawals, you can roll over your withdrawn funds (as well as any amount withheld by myRA account for tax purposes) into another Roth IRA within 60 days. To do so, you will first need to identify a different Roth IRA provider and open an account with them. You should then follow the process outlined by your new Roth IRA provider to make a payment to your new Roth IRA account.

How can I transfer or roll over my myRA account into my employer-sponsored retirement plan, such as a 401(k), or into a traditional IRA?

As is the case with all Roth IRAs, your myRA account balance cannot be transferred or rolled over into your employer-sponsored retirement plan or a traditional IRA. If you want to transfer or roll over your myRA account balance, you can do so only into another Roth IRA.

What will happen to my myRA account if I draw down the balance to $0?

If your account balance is $0, your account will be closed. There is no fee associated with myRA account closure.

There are many resources to help you learn more about investing. A good place to start is Investor.gov, which is run by the U.S. Securities and Exchange Commission’s Office of Investor Education and Advocacy. This site is intended to help individuals invest wisely and avoid fraud. The SEC’s main site is also worth visiting. Another site worth visiting is MyMoney.gov, a product of the Congressionally-chartered Federal Financial Literacy and Education Commission, which is made up of more than 20 Federal entities that are coordinating and collaborating to strengthen financial capability and increase access to financial services for all Americans. This site provides information to encourage financial literacy.